My employee just gave me one of these, and I wasn't aware how different the system was. I'm going to need to teach myself how to process these. I'm hoping it's simplified on the employer's end. At a glance, it looks like a lot of the complexity has moved to the employee's side of things.
How are payroll people able to compute 2020 federal tax from an employee's paycheck if the employee hasn't updated their W4? Do they try and base it off of their 2019 W4. This new way of doing things is ridiculous. What happens if an employee has a ton of overtime for the year? Even after inputting all these figures(which is a violation of my privacy if you ask me), will they still be under in taxes at the end of the year? This is so confusing! Ugh!🙄
@@jamieschag There are a separate set of calculations for the new and old style W4s. The old ones are more or less the same as before, just with updated numbers. I'll learn how to do the new ones probably later today or tomorrow.
@@clearvaluetax9382 I just started my job and it's my only job. I'm single with no kids and make minimum wages. I just want a little bit taken out for federal taxes. What lines should I fill out and what lines should I leave blank?
@@marcelaa9498 i did too, which still confuses me. if i may ask, do the think they take out more or less out of your check? I ran my numbers through one of those paycheck calcultors online and it acts like it barely takes out anything with the new w4.
Yup, this is causing a lot of heartache for a lot of people Maya. However, this format and updated W-4 should be more accurate. Thanks for watching Maya!! I appreciate it!
how though we don't even know how much we are claiming. What would I do if I want to claim what use to be. This is so confusing and yes your video shows how to fill it out but it does not explain how much will be taken out of our pay checks and for people like me we need to make sure we are having enough taken out so we don't pay at the end of the year but not so much that we can not live.
Ive been n working on this for 8 hours already today and I'm no closer to figuring it out. The old way was easier. Thus new way is an absolute headache.
@@andrewsalazar98 vote for the right legislature canidates. We have to learn how to work what we are missing in our government. Or we have to learn to except it. For me it's harder to learn to except something than it is to do what is correct action.
Great video. 👍🏾 for so long, me and my wife have been owing at the end of the year just because we didn’t check the box, when filing married jointly. 🤦🏾♂️ now we’re doing great. I’m subscribing 👍🏾
As someone who just started working full time out of college and recently got married, this helped a lot. Our HR department was supposed to help us with these, but they just give us links to documents that don’t make much sense to me. Thanks again!
D U D E ! complete life saver! Hubby and I just filed our taxes and we got screwed over. Now we know that was our fault because of how we filed out our w4. Extremely helpful, informative and fool-proof. Thank you SO MUCH for your help 😊
Just came across your video and I learned so much!! Love how you take the time to explain each concept clearly, but are direct in explaining it so I don’t feel like I’m wasting my time watching a CZcams video full of nonsense. You have a new subscriber 😍👍🏽
Thank you so much for your wisdom,my Job just handed me the new form W-4 2020 and said sign it, I ask them to help me,they said we have nothing to do with that.I was dumb founded,but thanks to your video it help me out.
Thanks for simplifying and breaking this down. Something I can assist my tax clients with. They were confused and so was I. Now I'm confident I can assist them properly. Thank you!!
Thanks for the helpful and clear tax information on W4. My wife started working recently and I had to help her fill out this form. I've been in the same job for 20+ years and haven't filled one out since. After watching your video we felt more comfortable filling out her form. Thank You.
I have to tell you that you have a great way of teaching this stuff man. As I have become more financially literate what you say and post videos about make more and more sense. I personally have very simple tax returns with 2 jobs. My goal is to get to the break-even point. Thanks for sharing your knowledge with us common folk.
This was amazingly helpful. I was so confused about the new w4. Last year we had to pay in at tax time. This year it looks like we will pay again. I so appreciate the help.
I just got another job and I was handed this form. I was clueless on what to do. So brought the form home with me and found your video. Thank you for this video. Made it easier to understand!!!
And the whole reason the IRS released this new form was to be easier to fill. Yet we have to watch a video to figure out how to fill it out instead of just claiming a number as before. This new form should be a lot more accurate for taxes. But it's idiotic for the to claim it's easier to fill out if you have to do calculations. All my coworkers just want to put the number to claim not have to do calculations. And yes I know it's only for new hires. I know I'm going to get a lot of blank looks from new hires when I have to explain this new form. Finally, great video, thanks. Explains everything about the new W$4
Question that doesn’t seem to get answered on this feed is this: Do both spouses fill out their W4 the exact same way for their separate jobs? Or does only one spouse fill out the form? And what if there is a third job (meaning one spouse has a 2nd job) is another form filled out again? We don’t have any dependents...just jobs. 😉
Same but not for me but for wifey. Ive been the head of house hold 10+yrs and she always kept insisting she wanted to work & get a job. Got hired and came to the corp. Office to fill out paperwork. She had no clue what info to write.Came to me waiting in the car.I seem to have confused her or she thinks I'm a silly rabbit,so I had to pull up trusty ol' YT.🥴
@@ohhgeebigmack420 If the two of you agree to file married/joint then both W4's need to indicate this. If you have children involved then you'll need to decide who and how to carry the children. For example if there's one child, both parents do not need to indicate this on the W4 form. If you both carry the same amount then you'll likely under withhold and owe next year. Additionally concerning income, you will both need to check the box on the right side 2c if incomes are similar. If not you will need to refer to the worksheet on the back pages in case someone needs additional withholding.
This video on W-4s was excellent, as it was succinct, informative, and clearly and plainly worded and explained. Thanks for such a wonderful and free service.
Hello, thanks for this video. Question 1: When someone gets married, its something you should go back and look into and fill out together to update? Question 2: Once you figure out Step 2(b) #4, would you divide that withing you and your wife? Or would you just put that on one of the W4s and not the other?
Hi Erik, yes, you would need to take into consideration your tax settings for the WHOLE YEAR in the year that you're getting married. Only one person would take into consideration and populate STEP 4(b) on the W-4.
Thank God! I knew you would come through B! I saw my paycheck this morning and gawked! I though about calling HR when they open but I have anxiety so I sought google instead lol! And who pops up? YOU are the man! Another reason I know I'm living in the higher frequencies...I can relax now. Muah!
Thank you so much for this! Our boss uses a bookkeeper that is useless and has not been able to answer any questions and just keeps referring us to the IRS website to get help. I'm sharing this with everyone! Thank you!
My managers were quite confused when the saw the 2020 form. After reading a lot of FAQs and finally watching this video (and passing it along to them) the form makes a lot more sense. Thank you very much. On a side note your audio quality isn't that great when you're going over the form itself(most of the video), needs a little more treble, bit less midrange and low end. Just some feedback. :-)
Hi Phil, thanks for the tip on the audio Phil. I just watched a youtube tutorial on the Blue Yeti mic after I read your comment.. haha. I appreciate it!
Wish we were taught this stuff in high school! We weren't told we had to fill out a new W-4 at work, so I wonder how my employer is determining how much go withhold?
Grreat video. We were emailed to have the new W4 2020s out to all Empployees, noticed its significant differences, and found this video first. Very helpful and understanding, now we are all subscribed.
This was extremely helpful for me to figure out what I was doing with this form. I have never had to fill out a w-4 before, just a w-2 and this made it so easy to understand!
Thank you so much. This truly helped me better understand the W4 form. I got caught up paying less taxes and owing money. This is going to prevent me from making that mistake again.
Okay I'm filing head of household and I have one dependant over 18. So do I write 500.00 on the line beside that? This is the way I filled out W4 and payroll didn't withhold any federal. What did I do wrong. Help
My Question is now that I know how my husband fills out his form(due to being the higher paying job) How do I as being the lower paying job fill out mine?
So far your walk thru and explanation on this new ridiculous form really is the best one I've come across on the web. Very helpful and nice in spite of this ugly virus. Many blessings to you.
Thanks for explaining it, they turned from a simple form to a much more difficult one. I work 3 jobs. I work at a school during the year so I make a salary from that one but the other 2 jobs is hourly and my paycheck is different amounts each check because at one job I do overtime. So how am Im suppose to figure this out? I guess Im gone to have to guess my salary.... They just love making things hard, can they just come back with the old w4 in 2021🤷🏾😔
Thanks for sharing your knowledge. I received a notification about this new form and the first person that came to mind was you. I knew you had the answers needed. Keep sharing your knowledge!
Thanks for the video. So in a scenario where you are married filing jointly, the higher earner seems to pay way more in taxes than the lower earner. Is this correct? That doesn't seem fair.
Hi Bender, yup, that's correct, it's the higher earner that takes the hit for the team. But think about it, the IRS recommends this for two reasons: 1. It's just much easier to do it that way than to try to coordinate with your spouse. 2. Imagine taking away the additional funds from the lower earner, they would probably be complaining even more. I understand it would be more "fair" to have both spouses chip in to foot the bill, but for those reasons, that's how it's recommended by the IRS. But don't let this stop you if you are the higher earner, you can veto this and have it as a shared responsibility with your spouse.
@@clearvaluetax9382 Thanks for answering. Could you get around this instead by checking "Married filing separately" on your W-4 and then going ahead and filing jointly when it comes time to do your taxes? Wouldn't this way ensure that the employers are withholding at the same rate for both individuals (so long as their individual incomes fall in the same tax bracket), thereby preventing the higher earner from paying a substantially greater amount of tax than the lower earner?
I’m a bit confused. Wife and I both work at different salaries. Both fill out separate forms at work at the former “married at single rate”. Then we file jointly at end of year. We know we are being over taxed...thru the year but use this untouched money as vacation money the following year. For 2018 to 2019 we had extra taken out as the tax rate was lowered BUT we still wanted to get our normal larger return come tax refund time. So what do we do now on this form? Claim “single”? Then still add an additional amount at 4c? Is the 2020 tax rate lower than the 2019 tax rate? Thank You!
Hi GMRO, if you want to intentionally overwithhold in your scenario, just have each of you mark of Single and then still add an additional amount at 4c. The 2020 tax rate is the same as 2019, just adjusted for inflation.
ClearValue Tax Ok, great! So when you say its adjusted for inflation you mean it’s higher - right? It wouldn’t have been lowered right? This is very helpful.
@@gmro-ronosinski5102 Hi Ron, I mean it's lower taxes each year due to inflation. For example, if you make a $1,000,000 right now, you'll break into the highest tax bracket in 2020. In a 50 years from now, if you make a $1,000,000, that will probably be so little money and you'll be in a very low tax bracket. If you make the same amount of money each year, the inflation adjustments work in your favor to lower taxes.
I don't understand. I always have claimed "1" on my W-4 and I would still receive a decent return. Claiming "0" I would end up overpaying the government. Since they have done away with allowances on this new W-4 am I essentially forced to over-pay the government?
@@clearvaluetax9382 yes but are we allowed to claim 99 children if we want no tax to be withheld?so we can put that money in a savings account for the year and then pull it out and pay taxes as a lump sum next year?
Thank you so very much for your PLAIN ENGLISH steps! I find all things IRS stressful because I do NOT want that as a problem, but being afraid is no good, so THANK YOU.
I was reading some other literature on claiming dependents. It was worded if you have dependents and are expecting the child tax credit, you are required to fill in the dependent amount on the w4. So say 2 kids,= $4000. I have always claimed 0s for dependents. If I leave this blank, can I still claim the child tax credit come time to file?
Hi Rudy's Refuge, absolutely. In your specific situation, what would happen is that you would have withheld $4,000 more in federal taxes than you should have and you would get a refund of $4,000 when you file your taxes. I hope that helps! Thank you for watching and for your support Rudy's Refuge!
Hi Rudy, the recommended procedure is taking it from the higher earning spouse. It's just easier that way and probably causes less confusion (which is probably why it's the recommended way). However, yes you can share the burden between spouses as well.
When changing my W4, does Extra Withholding line (C) add on to what was previous being withheld or is it the new withheld amount? I didnt have anything written here in previous year.
What happens if I have a job that is my highest paying job, then I have 2 more jobs that I make way less then my first job, how do I fill out the W4 for those jobs?
Thank you sir, i was confused about not seeing the allowances from 2019 W4 to this new 2020 W4. I wanted to add allowances for this year, but didn't see that option. So i'll assume i only need to fill 1a and b as well as step 3 and finish with step 5?
Hi Jose, yes, that's correct. There are no longer "allowances". Now, it's more claiming children or dependents as you mentioned on Step 3. Some people think this form and method is simpler, others think it's more confusing!
Thank You Brian.... I'm working the same job but just with new company acquiring our site so they want to file new W4... Last time I filed one was 2017 so this new one looks more like a 1040 then then old post card one that you only had to fill out number of claimed exemptions... You did a great job in making this new form make sense.
From my understanding after watching the video, I leave everything blank after checking single on the W4 to get a refund back from the IRS? Everything mention after that section of checking single was not applicable to me
Thank you! Question for you. I am single and have more than one job, but I don’t receive a W-2 for it (I get a 1099C). Does that second job count? Or do I only count W-2 jobs?
Hi Ray, yes, you can add it on to the W-4 to account for it (the 1099) or, you can send in estimated tax payments on the 1099 income and not account for it on the W-4.
This new form is really confusing, but thru your help im more knowledgable than the rest of my co-workers, so ill tell them to watch your video..Thank you so much
I am starting a 2nd job this month. I have the new w4 I am suppose to fill out. This jobs income will be much less than my 1st jobs income. So is it true that I only need to fill out sections 1 and 5 for this new job? And should i do a new w4 for my 1st job to do the dependents?
Hi Jennifer, in your case, you will fill out STEP 2 on your W-4 for your higher paid job. On your lower paid job's W-4, you just complete STEPS 1 and 5.
I'm struggling to understand why I have to put the amount from my calculation on step 4 from the Step 2 (b) form on the extra withholding line. Why do I have to have extra funds withheld if they are already taking out my taxes with this and my other job (for which I have already filled out a W-4).
What is looked at as similarly pay under this form? Meaning, if one person makes 100k and the other makes 80k is that considered similarly pay for step 2.
That's a good question A Crosthwait. I'd personally say within 10% of each other. So it might be best to complete Step 2 to be most accurate in your situation.
In your case, only the higher income earner should claim the children otherwise you'll be duplicating the expected credits for the children if you claim them on both W4s.
@@clearvaluetax9382 I was advised with the previous W4 system that the lower earner of two incomes in married filling jointly should claim the dependents for withholding. Right now, I'm not sure if my husband will update his withholdings using the new system, but I am able to access the W4 online.
Since allowances don’t exist anymore am I giving the government an interest free loan ? Is there any other way I can make up for the allowances so I don’t have more taxes taken out only to get a large refund at the end of the year ? Thanks.
In the old system, claiming allowances signified to the payroll system that you were expecting to be in a lower tax bracket, therefore, withhold less taxes than the DEFAULT SETTINGS. In this new 2020 system, yes, you can manipulate the W-4 to withhold less taxes than the DEFAULT SETTINGS. So you accomplish that by filling in a value in step 3. Writing a value in Step 3 signifies to the payroll system withheld that much less in taxes during the year, spread out over my paychecks. So if you input $1,000 in there. You'll be withholding $1,000 less in taxes spread out over your paycheck. You don't need dependents to input a value in Step 3.
Hi John, I think you mean the W-4 since only employers produce W-2s and provide that to the IRS. But yes, the IRS questionnaire is the most accurate because they ask you many more questions.
Im 16 and I'm a minor starting to get my first job, but in order for me to work my Manager said I need to fill this w-4 out. What do I do!!?? Please help
Hi Grtfulow Let's Dance... is your name Great Flow? Cool name. Here's how to withhold zero for federal: To claim exemption from withholding, certify that you meet both of the conditions above by writing “Exempt”on Form W-4 in the space below Step 4(c). Then, complete Steps 1(a), 1(b), and 5. Do not complete any other steps. If you want to claim zero for state, you need to adjust your state W-4. The W-4 is a federal form for federal withholding.
Why would I take out income from other sources such as real estate when I may have expenses that make it a wash? I'm cheating myself. I'll just wait until tax time to do all of that like I normally do.
Ra Ma, "taxable" income. If you have rental properties or realty, generally, you should not have "taxable income", hopefully you have positive cash-flow, but if you have taxable income, you either have an extremely profitable rental property or you're doing something wrong. I hope that clarifies things, thank you for watching and the comment Ra Ma!
*** UPDATE: This video is valid in 2022 - the W-4 tax form is the same, just the year in the top right corner has changed. Enjoy!
One big scam that’s all it is
Can you do an update video the screen and font is hard to see and read thank you
*Is this current information*
@@mrsmincey9731 if u watch on laptop/desktop you can zoom in the video display
Even 3 years old it's still very helpful. I wasted an hour on other useless videos before it dawned on me to come to ClearValue!!!!
Payroll guy here, once again IRS tried to simplify something and in turn made it more confusing.
Agreed. That's the wonderful IRS for you... fun stuff!
Our payroll system hasn’t even updated to the W4 it’s been a straight nightmare
My employee just gave me one of these, and I wasn't aware how different the system was. I'm going to need to teach myself how to process these. I'm hoping it's simplified on the employer's end. At a glance, it looks like a lot of the complexity has moved to the employee's side of things.
How are payroll people able to compute 2020 federal tax from an employee's paycheck if the employee hasn't updated their W4? Do they try and base it off of their 2019 W4. This new way of doing things is ridiculous. What happens if an employee has a ton of overtime for the year? Even after inputting all these figures(which is a violation of my privacy if you ask me), will they still be under in taxes at the end of the year? This is so confusing! Ugh!🙄
@@jamieschag There are a separate set of calculations for the new and old style W4s. The old ones are more or less the same as before, just with updated numbers. I'll learn how to do the new ones probably later today or tomorrow.
Who needs an accountant when you have this guy 😂 Brian is also the only accountant I can afford right now 😂
Amen
This something they should start teaching in High School.
Hi Brittany, I agree!
The elite do not want you that smart
@@lmezy25 Totally agree!
Your comment is crushing it.
Yes
I have shared this with my entire hiring team. This video is now worshipped as the lifesaver of the month!
Nathan, I had to pin your message. Thank you so much, I appreciate the feedback and thanks so much for your support!
@@clearvaluetax9382
I just started my job and it's my only job. I'm single with no kids and make minimum wages. I just want a little bit taken out for federal taxes. What lines should I fill out and what lines should I leave blank?
L cool thanks o
Excuse me is this for me I'm married I want to add my newborn please let me know
@@4cubed22 if you live in Wash.DC
So long are the days of just writing "0" for deductions! Thank you for the video -- that was the clearest explanation I've been able to find.
Thank you so much for the feedback and kind words Alexa, I appreciate it!
@@clearvaluetax9382 Where do you put the "0" on this new tax form?? Im so lost.
@@coledupont9920 it's not like that anymore. I just left my whole form blank because I was so confused lol
@@marcelaa9498 i did too, which still confuses me. if i may ask, do the think they take out more or less out of your check? I ran my numbers through one of those paycheck calcultors online and it acts like it barely takes out anything with the new w4.
I want the old W4 back. This one is complicated.
Yup, this is causing a lot of heartache for a lot of people Maya. However, this format and updated W-4 should be more accurate. Thanks for watching Maya!! I appreciate it!
how though we don't even know how much we are claiming. What would I do if I want to claim what use to be. This is so confusing and yes your video shows how to fill it out but it does not explain how much will be taken out of our pay checks and for people like me we need to make sure we are having enough taken out so we don't pay at the end of the year but not so much that we can not live.
Jackie A in theory this if you choose the correct filing status then what’s taken out will be based on the standard exemption.
Ive been n working on this for 8 hours already today and I'm no closer to figuring it out. The old way was easier. Thus new way is an absolute headache.
I agree
This is definitely something they should be teaching in school.
Thanks for watching and the comment Jennifer, and I agree 100%!!!
They do, the problem is we don't know how to ask them. And if you have children, apply knowledge. Make them better
@@kendrickjamone6608 I'm a firm supporter of good parenting, you're absolutely right Kendrick!
The government would never use tax money to fund a public school program on how to lower your taxes
@@andrewsalazar98 vote for the right legislature canidates. We have to learn how to work what we are missing in our government. Or we have to learn to except it. For me it's harder to learn to except something than it is to do what is correct action.
Great video. 👍🏾 for so long, me and my wife have been owing at the end of the year just because we didn’t check the box, when filing married jointly. 🤦🏾♂️ now we’re doing great. I’m subscribing 👍🏾
About to start a new job and I always have anxiety about whether I'm filling out the W4 correctly. This was SO helpful. Thank you!
Thank you Dana for the feedback, I appreciate it! I'm happy to hear this video assisted. Happy New Years!
Me too
The old forms were so much easier. Thanks for the information on how to fill out the new form.
Thanks for your support Raina, I appreciate it!
It seems like we should get a tax credit for filling this form out, because we are doing all of their work
LOL, I agree with you on this one T Walker.
As someone who just started working full time out of college and recently got married, this helped a lot. Our HR department was supposed to help us with these, but they just give us links to documents that don’t make much sense to me. Thanks again!
My pleasure Peyton and thank you so much for the feedback, I appreciate it!
Your employer is not authorized to help you complete the form
@@mistermylo7601 You're spot on Mister Mylo.
@@mistermylo7601 true but then again if they could .. it wouldn't be right because they don't know either 🤣🤣🤣🤣
D U D E ! complete life saver! Hubby and I just filed our taxes and we got screwed over. Now we know that was our fault because of how we filed out our w4. Extremely helpful, informative and fool-proof. Thank you SO MUCH for your help 😊
Thank you so much Paloma for the feedback and such kind words! I appreciate it so much!
Do you know how the lower income spouse needs to fill out their w4 form?
I am helping my son fill out his W4 because this is his first job. This was a refresher course. Thank you!
Just came across your video and I learned so much!! Love how you take the time to explain each concept clearly, but are direct in explaining it so I don’t feel like I’m wasting my time watching a CZcams video full of nonsense. You have a new subscriber 😍👍🏽
Thank you so much for your wisdom,my Job just handed me the new form W-4 2020 and said sign it, I ask them to help me,they said we have nothing to do with that.I was dumb founded,but thanks to your video it help me out.
Awesome!!! Thank you Rosi for watching and for your feedback. I'm so happy to hear this video helped, thank you again!!
Thanks for simplifying and breaking this down. Something I can assist my tax clients with. They were confused and so was I. Now I'm confident I can assist them properly. Thank you!!
I just took a webinar on understanding the new W-4 and this was better information Thank you !
Thank you Jenna, I appreciate the kinds words and awesome feedback!!! Thank you for watching!
Thank you for a simple and easy to follow tutorial! Filling out the W4 was a head-scratcher but now I’m able to turn it in with confidence!
Thank you Kae for the feedback and motivating words! Thank you for watching and for your support, I appreciate it Kae!
Thanks for the helpful and clear tax information on W4. My wife started working recently and I had to help her fill out this form. I've been in the same job for 20+ years and haven't filled one out since. After watching your video we felt more comfortable filling out her form. Thank You.
I have to tell you that you have a great way of teaching this stuff man. As I have become more financially literate what you say and post videos about make more and more sense. I personally have very simple tax returns with 2 jobs. My goal is to get to the break-even point. Thanks for sharing your knowledge with us common folk.
Thanks for the awesome feedback Victor, I appreciate it! I'm glad to see these videos are helpful!
I am a divorced mom, teacher, and only claim one of my kids. So this was VERY helpful for me!
Thank you Larissa for the feedback, I appreciate it!
Lowkey wished you made the instructional video for using the Withholding Estimator lol. Thanks for the info, much appreciated. You're a Godsend.
Thank you for this just about to start a new job. Finally! The last 8 months sucked!
This was amazingly helpful. I was so confused about the new w4. Last year we had to pay in at tax time. This year it looks like we will pay again. I so appreciate the help.
Excellent, I'm happy to hear it was helpful! Thank you for the feedback and for your support, I appreciate it D McCarty!
I just got another job and I was handed this form. I was clueless on what to do. So brought the form home with me and found your video. Thank you for this video. Made it easier to understand!!!
Awesome and thorough. He broke down the complete form for different scenarios not just what applied to him like in other videos I've seen. 👍
Thanks Ray for the feedback, I appreciate it!
Excellent!!!! As I am an Account Manager for payroll - this is extremely helpful when assisting my clients. I will share with my team!!! Thank you....
Thanks Tiffany for the feedback, I appreciate it!
This guy is awesome!! Im a European CPA new US immigrant and I will watch every one of his video's while stuck at home.
And the whole reason the IRS released this new form was to be easier to fill. Yet we have to watch a video to figure out how to fill it out instead of just claiming a number as before. This new form should be a lot more accurate for taxes. But it's idiotic for the to claim it's easier to fill out if you have to do calculations. All my coworkers just want to put the number to claim not have to do calculations. And yes I know it's only for new hires. I know I'm going to get a lot of blank looks from new hires when I have to explain this new form. Finally, great video, thanks. Explains everything about the new W$4
Totally agreed! And I hear you about the blank looks because that's the reception I get when I explain the W-4 to my clients.
Was a really good and concise yet still thorough overview of properly completing the new W-4. Thanks ClearValue Tax!
By far the easiest to understand of the most difficult tax form ever. Thank you!!
Question that doesn’t seem to get answered on this feed is this: Do both spouses fill out their W4 the exact same way for their separate jobs? Or does only one spouse fill out the form? And what if there is a third job (meaning one spouse has a 2nd job) is another form filled out again? We don’t have any dependents...just jobs. 😉
That’s my question, too!!! I wish someone would answer this!!!
I am watching this in my car outside of my job cause I had no idea how to fill one of these out.
Me too 😅
Me too
😂😂😂...
Same but not for me but for wifey.
Ive been the head of house hold 10+yrs and she always kept insisting she wanted to work & get a job. Got hired and came to the corp. Office to fill out paperwork. She had no clue what info to write.Came to me waiting in the car.I seem to have confused her or she thinks I'm a silly rabbit,so I had to pull up trusty ol' YT.🥴
@@ohhgeebigmack420 If the two of you agree to file married/joint then both W4's need to indicate this. If you have children involved then you'll need to decide who and how to carry the children. For example if there's one child, both parents do not need to indicate this on the W4 form. If you both carry the same amount then you'll likely under withhold and owe next year. Additionally concerning income, you will both need to check the box on the right side 2c if incomes are similar. If not you will need to refer to the worksheet on the back pages in case someone needs additional withholding.
This video on W-4s was excellent, as it was succinct, informative, and clearly and plainly worded and explained. Thanks for such a wonderful and free service.
This was an amazing break down. Just had to fill a new one of these out. Super helpful thanks very much.
Thanks Daniel for watching and the feedback, I appreciate it! Thanks for the support!
Hello, thanks for this video.
Question 1: When someone gets married, its something you should go back and look into and fill out together to update?
Question 2: Once you figure out Step 2(b) #4, would you divide that withing you and your wife? Or would you just put that on one of the W4s and not the other?
Hi Erik, yes, you would need to take into consideration your tax settings for the WHOLE YEAR in the year that you're getting married. Only one person would take into consideration and populate STEP 4(b) on the W-4.
Thank God! I knew you would come through B! I saw my paycheck this morning and gawked! I though about calling HR when they open but I have anxiety so I sought google instead lol! And who pops up? YOU are the man! Another reason I know I'm living in the higher frequencies...I can relax now. Muah!
using for all my employees who are confused by this new form - thanks!!
Thank you Jill for your support, I greatly appreciate it, you're the best!
Thanks for clearly explaining this new method in Layman’s Terms. I can finally update my W4. You Rock man.
Thanks for the feedback Rich Dawg, YOU rock!
I've been carrying my W4 around in my purse for 2 wks now! You've answered a questions I had about step3 &4 . Thank you!
I fear there will be many who will be owing the IRS more during tax season because they made this so confusing to fill out 😔.
You've made filling out my W4 so easy! Thanks so much!
Thanks so much Melanie for that feedback and kind words, I appreciate it!
Thank you so much for this! Our boss uses a bookkeeper that is useless and has not been able to answer any questions and just keeps referring us to the IRS website to get help. I'm sharing this with everyone! Thank you!
My managers were quite confused when the saw the 2020 form. After reading a lot of FAQs and finally watching this video (and passing it along to them) the form makes a lot more sense. Thank you very much. On a side note your audio quality isn't that great when you're going over the form itself(most of the video), needs a little more treble, bit less midrange and low end. Just some feedback. :-)
Hi Phil, thanks for the tip on the audio Phil. I just watched a youtube tutorial on the Blue Yeti mic after I read your comment.. haha. I appreciate it!
Thanks for the information it was very helpful. I'm doing my taxes myself this year and I want to make sure I get this right!
Awesome! I'm so happy to hear it was helpful, thanks for the feedback William, I appreciate it!
Nice, clear explanation. I used to be able to ballpark most client W4 in about 45 seconds. Now I give them the video.
You’re really good at explaining. Good job I’m proud of you. Keep up the good work :)
Thank you Slicky Ricky! I really appreciate your comment and feedback. That's very motivating to me!
Wish we were taught this stuff in high school! We weren't told we had to fill out a new W-4 at work, so I wonder how my employer is determining how much go withhold?
Seriously, they need to teach this stuff earlier!
We'll be doing our own taxes this year due to covid and it's starting to get pricier every year. The more we make the more they charge us lol!
They determine by what you fill out.
Grreat video. We were emailed to have the new W4 2020s out to all Empployees, noticed its significant differences, and found this video first. Very helpful and understanding, now we are all subscribed.
This was extremely helpful for me to figure out what I was doing with this form. I have never had to fill out a w-4 before, just a w-2 and this made it so easy to understand!
Thank you Sydney for the awesome feedback, I really, really, really appreciate it! Thank you for watching and for your support!
Omg this was perfectly demonstrated...ty
OMG, thank you for the OMG comment, I loved it! You are the best, thank you for your support Nishka, I appreciate it!
Wasn't even aware that the W4 form had changed. Glad I subscribed to this channel. Goldmine of relevant, timely and valuable info.
Thank you Banachan888, you are awesome and I'm so happy to hear these videos are helpful!
This was sooooooooo helpful..Thanks for taking the time out of your day to explain.
Thank you R H for your feedback and for your very kind and thoughtful comment, I appreciate it!
10-10 this is the perfect video !!!!
Thank you Luis Luna, 10-10 your comment was perfect!!!
Thank you so much. This truly helped me better understand the W4 form. I got caught up paying less taxes and owing money. This is going to prevent me from making that mistake again.
You should do example from each filing status and give example like you did. That would benefit more instead saying if, that and not.
That's a good idea Sueka!
This W-2 is the most difficult especially for those that aren’t savvy about stuff like this.
Hi Julia, yes, this trips up a lot of people all the time. Thanks for watching Julia, I appreciate it!
Its just like taxes...it says what to do right on the form. Not rocket science
@@crazyhass84 Hey Andy, some of the terminology trips up some people. Well I'm happy it keeps me in business!
It helps to start by knowing the difference between a W4 and a W2. 😯🤭
@@elgringoec I was going to say the same. Beat me to it. Form isn't that hard if you can read and think. I'm probably an asshole though.
Thanks man Love your videos been self employed for 25 years now taking a job. Great help for w-4 tax sheet info! Thanks again!
LOL at him changing the zip code in order to avoid using 666 😂
My zip code is unfortunately that number. Look up Sultana,CA.
Okay I'm filing head of household and I have one dependant over 18. So do I write 500.00 on the line beside that? This is the way I filled out W4 and payroll didn't withhold any federal. What did I do wrong. Help
This literally helped me so much. Thank you, wish they taught me this in high school!
Right? That's my thoughts exactly. I feel like this should be taught in senior year so it's fresh in your mind when you start a first job.
I Truely thank to u because me and my manager are fighting on my paycheck. They are withholding more than enough on my paycheck. THANK YOU.
Okay so for the second job (lower income) should we be claiming exemptions? I’m confused about that part
My Question is now that I know how my husband fills out his form(due to being the higher paying job) How do I as being the lower paying job fill out mine?
So far your walk thru and explanation on this new ridiculous form really is the best one I've come across on the web. Very helpful and nice in spite of this ugly virus. Many blessings to you.
Hey, quick question. I am single and was just hired at a second job. Do I still say I have 2 jobs? Thank you! And appreciate the videos!
I'm in the same boat
Yes
Thanks for explaining it, they turned from a simple form to a much more difficult one. I work 3 jobs. I work at a school during the year so I make a salary from that one but the other 2 jobs is hourly and my paycheck is different amounts each check because at one job I do overtime. So how am Im suppose to figure this out? I guess Im gone to have to guess my salary.... They just love making things hard, can they just come back with the old w4 in 2021🤷🏾😔
Thanks for sharing your knowledge. I received a notification about this new form and the first person that came to mind was you. I knew you had the answers needed. Keep sharing your knowledge!
Thanks for the video. So in a scenario where you are married filing jointly, the higher earner seems to pay way more in taxes than the lower earner. Is this correct? That doesn't seem fair.
Hi Bender, yup, that's correct, it's the higher earner that takes the hit for the team. But think about it, the IRS recommends this for two reasons:
1. It's just much easier to do it that way than to try to coordinate with your spouse.
2. Imagine taking away the additional funds from the lower earner, they would probably be complaining even more.
I understand it would be more "fair" to have both spouses chip in to foot the bill, but for those reasons, that's how it's recommended by the IRS. But don't let this stop you if you are the higher earner, you can veto this and have it as a shared responsibility with your spouse.
@@clearvaluetax9382 Thanks for answering. Could you get around this instead by checking "Married filing separately" on your W-4 and then going ahead and filing jointly when it comes time to do your taxes? Wouldn't this way ensure that the employers are withholding at the same rate for both individuals (so long as their individual incomes fall in the same tax bracket), thereby preventing the higher earner from paying a substantially greater amount of tax than the lower earner?
@@jc72085 Yes Bender, that would be a workaround, but filling it out properly would produce an accurate figure. But yes, you got the right concept.
@@clearvaluetax9382 Honestly did not expect a second reply. You're a beast man, thanks for your help!
@@jc72085 hahahahaha thanks Bender, thanks for the motivation to stay in beast mode. You rock!
Thank you so much for the instructions.
My pleasure Dr. Satrapoulos, thanks for watching!
Thanks to your video, my take home pay just increased about $200 per month !
I’m a bit confused. Wife and I both work at different salaries. Both fill out separate forms at work at the former “married at single rate”. Then we file jointly at end of year. We know we are being over taxed...thru the year but use this untouched money as vacation money the following year. For 2018 to 2019 we had extra taken out as the tax rate was lowered BUT we still wanted to get our normal larger return come tax refund time. So what do we do now on this form? Claim “single”? Then still add an additional amount at 4c? Is the 2020 tax rate lower than the 2019 tax rate? Thank You!
Hi GMRO, if you want to intentionally overwithhold in your scenario, just have each of you mark of Single and then still add an additional amount at 4c. The 2020 tax rate is the same as 2019, just adjusted for inflation.
ClearValue Tax Ok, great! So when you say its adjusted for inflation you mean it’s higher - right? It wouldn’t have been lowered right? This is very helpful.
@@gmro-ronosinski5102 Hi Ron, I mean it's lower taxes each year due to inflation. For example, if you make a $1,000,000 right now, you'll break into the highest tax bracket in 2020. In a 50 years from now, if you make a $1,000,000, that will probably be so little money and you'll be in a very low tax bracket. If you make the same amount of money each year, the inflation adjustments work in your favor to lower taxes.
I don't understand. I always have claimed "1" on my W-4 and I would still receive a decent return. Claiming "0" I would end up overpaying the government. Since they have done away with allowances on this new W-4 am I essentially forced to over-pay the government?
Ryan McG, I explain that in my other W-4 video, please check it out!
@@clearvaluetax9382 yes but are we allowed to claim 99 children if we want no tax to be withheld?so we can put that money in a savings account for the year and then pull it out and pay taxes as a lump sum next year?
Thank you so very much for your PLAIN ENGLISH steps! I find all things IRS stressful because I do NOT want that as a problem, but being afraid is no good, so THANK YOU.
As a payroll manager, I'm already seeing incorrectly filled out forms coming in. I wish I could make all of our employees watch this video!
Hi Melissa, thanks for the feedback and it's funny that you say that since the IRS tried to make this a simplified version of 2019's W-4.
ClearValue Tax they definitely missed the mark!
@@sweetapplesnider haha, yes, let's see when the IRS changes it yet again.
@chante faison Yes, best to stay out of trouble and not be one of those.
@chante faison Yes, there's going to be a lot of peoples withholdings screwed up and surprises come next tax season I imagine.
I was reading some other literature on claiming dependents. It was worded if you have dependents and are expecting the child tax credit, you are required to fill in the dependent amount on the w4. So say 2 kids,= $4000. I have always claimed 0s for dependents. If I leave this blank, can I still claim the child tax credit come time to file?
Hi Rudy's Refuge, absolutely. In your specific situation, what would happen is that you would have withheld $4,000 more in federal taxes than you should have and you would get a refund of $4,000 when you file your taxes. I hope that helps! Thank you for watching and for your support Rudy's Refuge!
Thank you, Your public service is highly appreciated.
So would you take the additional withholding amount all from one spouses check if it is a married filing jointly, or split it between them?
Hi Rudy, the recommended procedure is taking it from the higher earning spouse. It's just easier that way and probably causes less confusion (which is probably why it's the recommended way). However, yes you can share the burden between spouses as well.
When changing my W4, does Extra Withholding line (C) add on to what was previous being withheld or is it the new withheld amount? I didnt have anything written here in previous year.
You explained this Exponentially well. Props fam. I subbed.
What happens if I have a job that is my highest paying job, then I have 2 more jobs that I make way less then my first job, how do I fill out the W4 for those jobs?
Thank you sir, i was confused about not seeing the allowances from 2019 W4 to this new 2020 W4. I wanted to add allowances for this year, but didn't see that option. So i'll assume i only need to fill 1a and b as well as step 3 and finish with step 5?
Hi Jose, yes, that's correct. There are no longer "allowances". Now, it's more claiming children or dependents as you mentioned on Step 3. Some people think this form and method is simpler, others think it's more confusing!
ClearValue Tax much appreciated my good sir. Take care.
@@LATiiN408 My pleasure Jose!
Thank You Brian.... I'm working the same job but just with new company acquiring our site so they want to file new W4... Last time I filed one was 2017 so this new one looks more like a 1040 then then old post card one that you only had to fill out number of claimed exemptions... You did a great job in making this new form make sense.
From my understanding after watching the video, I leave everything blank after checking single on the W4 to get a refund back from the IRS? Everything mention after that section of checking single was not applicable to me
Same here. Was really hoping for some tips
Thank you! Question for you. I am single and have more than one job, but I don’t receive a W-2 for it (I get a 1099C). Does that second job count? Or do I only count W-2 jobs?
Hi Ray, yes, you can add it on to the W-4 to account for it (the 1099) or, you can send in estimated tax payments on the 1099 income and not account for it on the W-4.
This new form is really confusing, but thru your help im more knowledgable than the rest of my co-workers, so ill tell them to watch your video..Thank you so much
I am starting a 2nd job this month. I have the new w4 I am suppose to fill out. This jobs income will be much less than my 1st jobs income. So is it true that I only need to fill out sections 1 and 5 for this new job? And should i do a new w4 for my 1st job to do the dependents?
Hi Jennifer, in your case, you will fill out STEP 2 on your W-4 for your higher paid job. On your lower paid job's W-4, you just complete STEPS 1 and 5.
I'm struggling to understand why I have to put the amount from my calculation on step 4 from the Step 2 (b) form on the extra withholding line. Why do I have to have extra funds withheld if they are already taking out my taxes with this and my other job (for which I have already filled out a W-4).
Hi Akihito, please watch 3:17 of the video until 4:50 to understand why. I hope that helps, Happy New Years!
OMG, thank you !!! The struggle was real trying to complete this new W-4!! Your video really helped me out!!!!
What is looked at as similarly pay under this form? Meaning, if one person makes 100k and the other makes 80k is that considered similarly pay for step 2.
That's a good question A Crosthwait. I'd personally say within 10% of each other. So it might be best to complete Step 2 to be most accurate in your situation.
Married filling jointly.. Do we both claim the children or just whoever has the higher income?
In your case, only the higher income earner should claim the children otherwise you'll be duplicating the expected credits for the children if you claim them on both W4s.
@@clearvaluetax9382 I was advised with the previous W4 system that the lower earner of two incomes in married filling jointly should claim the dependents for withholding. Right now, I'm not sure if my husband will update his withholdings using the new system, but I am able to access the W4 online.
More complicated than in past years. The video helped explain the mechanics of how the form works. Thanks
Since allowances don’t exist anymore am I giving the government an interest free loan ? Is there any other way I can make up for the allowances so I don’t have more taxes taken out only to get a large refund at the end of the year ? Thanks.
In the old system, claiming allowances signified to the payroll system that you were expecting to be in a lower tax bracket, therefore, withhold less taxes than the DEFAULT SETTINGS. In this new 2020 system, yes, you can manipulate the W-4 to withhold less taxes than the DEFAULT SETTINGS. So you accomplish that by filling in a value in step 3. Writing a value in Step 3 signifies to the payroll system withheld that much less in taxes during the year, spread out over my paychecks. So if you input $1,000 in there. You'll be withholding $1,000 less in taxes spread out over your paycheck. You don't need dependents to input a value in Step 3.
ClearValue Tax thank you for taking time out to reply !
@@ryan8769 My pleasure Ry An!
Do you recommend following the IRS's official guided W2 online questionnaire where they produce a W2 for you?
Thanks!
Hi John, I think you mean the W-4 since only employers produce W-2s and provide that to the IRS. But yes, the IRS questionnaire is the most accurate because they ask you many more questions.
@@clearvaluetax9382 I meant to say the W-4. Thank you!
I have w2 what mean plz tell me
Your video explained things so well - I had spent the last hour going over different websites. After watching your video, it all made perfect sense.
Im 16 and I'm a minor starting to get my first job, but in order for me to work my Manager said I need to fill this w-4 out. What do I do!!?? Please help
I want to have NO deductions withheld for Federal or State. How do I fill out this new W4?
Hi Grtfulow Let's Dance... is your name Great Flow? Cool name. Here's how to withhold zero for federal: To claim exemption from withholding, certify that you meet both of the conditions above by writing “Exempt”on Form W-4 in the space below Step 4(c). Then, complete Steps 1(a), 1(b), and 5. Do not complete any other steps. If you want to claim zero for state, you need to adjust your state W-4. The W-4 is a federal form for federal withholding.
fill in all lines “non assumpsit”
@@glock40snw It would be optimal to fill-in all line to your best ability for your specific situation.
He just wanted to help us with our taxes...then the truth came out and a hero took a stand!
Why would I take out income from other sources such as real estate when I may have expenses that make it a wash? I'm cheating myself. I'll just wait until tax time to do all of that like I normally do.
Ra Ma, "taxable" income. If you have rental properties or realty, generally, you should not have "taxable income", hopefully you have positive cash-flow, but if you have taxable income, you either have an extremely profitable rental property or you're doing something wrong. I hope that clarifies things, thank you for watching and the comment Ra Ma!